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MI HB4079

MI HB4079
Property tax: special assessments; income eligibility cap for special assessment deferment program; modify. Amends secs. 3 & 4 of 1976 PA 225 (MCL 211.763 & 211.764). TIE BAR WITH: HB 4080'25


summary

Introduced
02/12/2025
In Committee
02/24/2026
Crossed Over
02/19/2026
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1976 PA 225, entitled"An act to defer the collection of special assessments on homestead properties; to provide for conditions of eligibility for such a deferment; to prescribe the powers and duties of the department of treasury, local assessing officers, and local collecting officers; to provide for the advancement of moneys by the state to indemnify special assessment districts for losses from deferment of collections; to provide for the advancement of money by the state to an owner for the repayment of loans used by the owner to pay special assessments; to provide for the collection of deferred special assessments and interest thereon, and the disposition of these collections; to make an appropriation; and to prescribe penalties,"by amending sections 3, 4, and 8a (MCL 211.763, 211.764, and 211.768a), sections 3 and 4 as amended by 1980 PA 403 and section 8a as amended by 1981 PA 59.

AI Summary

This bill modifies the property tax special assessment deferment program, which allows eligible homeowners to postpone paying certain local government charges for improvements like sidewalks or sewers. Specifically, it increases the income eligibility cap for this deferment program from $10,000 to $34,900 for deferments requested on or after October 1, 2022, and it updates how the income cap is adjusted annually to reflect changes in the Consumer Price Index, a measure of inflation. The bill also clarifies that when a special assessment is deferred, the state will place a lien on the property, which is a legal claim against the property to secure payment, and that this lien is subordinate to any existing mortgage or land contract, meaning the lender or vendor has priority in case of default. Additionally, it adjusts the interest rate applied to deferred special assessments and makes other technical changes to the program's administration.

Committee Categories

Budget and Finance

Sponsors (8)

Last Action

Referred To Committee On Finance, Insurance, And Consumer Protection (on 02/24/2026)

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